Financing Your Home Renovation: Smart Options for Aussie Homeowners

Whether it’s adding a pool for the summer heat or building a granny flat for gran, renovations can add both monetary and practical value to your home. However, these improvements come at a cost and can be quite expensive unless you have a large amount of cash on hand. Choosing the right finance option can make funding your renovation painless and stress-free.

Home Equity

If you have home equity available, using it to pay for your renovation is a great option. There are several ways you can utilise it as finance for your renovation. If your current home loan has a redraw facility, you can withdraw any extra payments you have made and use that as finance. Another possibility is extending the length of your existing loan to fund your renovations.

Refinancing Your Home Loan

You can refinance to a new home loan that better fits your current needs, especially now that you have renovations to finance. This may mean refinancing to a line of credit loan or a construction loan. Additionally, refinancing will also give you the opportunity to move to a loan with a better interest rate.

Line of Credit Loan

A line of credit loan is a great option for those wanting to renovate their home. Rather than receiving one big lump sum like standard home loans, you draw money as it is needed. You only pay interest on the funds you actually use, which is ideal for renovations as you never know exactly how much it will cost until it is completed.

Each of these options is valid for funding your home renovations, whatever your grand plans for your home may be.

If you would like to learn more about financing your home renovations, please get in touch with us today.